-3- Part II Limits of Concessions to which Japan can Agree. In case the Japanese requirements in Part I are accepted, Japan will make no military advanced with French Indo-China as a base into the adjacent areas excepting China. Note: In case any question is asked concerning Japan’s attitude toward the Soviet Union, on answer should be given to the effect that so long as the Soviet Union adheres to the Soviet-Japanese Neutrality Pact, and commits no set contrary to the spirit of the said pact, such as of menacing Japan or Manchukuo, Japan will not take any military action on her own initiative. 2. Japan is prepared to withdraw her troops from French Indo-China following the establishment of a just peace in the Far East. 3. Japan is prepared to guarantee the neutrality of the Philippines.